Roger I Hall, "Organizational Learning and Adapting Trajectories Found in a System Dynamic Based Business Game", 1994
ua435
The counterintuitive associations, known as Bowman's Paradox, found between measures of financial risk and return for a large sample of companies across many industries have previously been explained in terms of the attitudes of managers to risk using prospect Theory. Similar results were obtained by the author from teams playing a system Dynamics based business game to stimulate a magazine publishing industry. Experimental results of the dynamics movements of the team companies within the financial measures of risk and return space are presented. Explanations based on organizational learning and adapting group decision making behavior provide an alternative account of the archetypal team transitions observed.